Markets Cast Wary Eye Toward Bailout Deal

Asian markets and the euro fell sharply early Monday, while the euro zone's shakier government bonds face risks as traders and investors absorb the news of plans to fund a bailout for Cyprus partly with depositors' funds. But few expect a deep and broad exit from riskier bets.

Analysts and investors said they were surprised by the euro-zone authorities' decision to impose a tax on all Cypriot depositors. And while many are relieved that an agreement averting a potential default by Cyprus has been reached, they were left to...